Insurance
By Adeola Akinbobola
The National Insurance Commission (NAICOM) has unveiled the Insurance Sector Strengthening Programme (ISSP), to advance insurance penetration, financial inclusion and innovation within Nigeria’s insurance ecosystem.
The Commissioner for Insurance, Mr Olusegun Omosehin, during the unveiling on Thursday in Abuja, said the programme offered a framework for advancing the growth and stability of the Nigerian insurance sector.
Omosehin said the programme also focused on capacity building, gender inclusion, youth engagement, and Micro, Small, and Medium Enterprises (MSME) and value-chain development.
He said the ISSP placed significant emphasis on awareness and education, adding that the insurance market was directly linked to public understanding and trust.
He said no insurance market could flourish where consumers do not appreciate insurance as a practical tool for financial protection and risk management.
According to him, the programme’s emphasis on capacity building and the future competitiveness of the country’s industry depends on the quality of its human capital.
He said as technology evolved and customer expectations changed, insurance professionals must continue to develop the skills and competencies required for excellent service delivery.
“The proposed training and professional development initiatives will strengthen technical expertise, improve professionalism, and enhance performance across the insurance value chain.
“No sector can achieve sustainable growth when large segments of society remain sidelined or underrepresented.
“Women are a significant economic force in Nigeria, while young people represent the future of our nation and our industry.
“Bringing these two groups into the mainstream of insurance through tailored products and innovative engagement will enhance the sector’s relevance.
“The programme further acknowledges the central role of micro, small and medium enterprises in national economic development,” he said.
He called for stronger collaboration among government, regulators, insurers and development partners to deepen insurance penetration in Nigeria.
The Chairman of the Senate Committee on Banking, Insurance and other Financial Institutions, Sen. Mukhail Abiru, said the programme was critical in Nigeria’s economic transformation.
Abiru who was represented by the Senior Legislative Aide, Mr Victor Inedu, said a strong and resilient insurance industry was essential to protecting lives and assets, supporting businesses and encouraging investment.
He said that Nigeria’s insurance market remained significantly underdeveloped with millions of individuals and businesses still uninsured or underinsured.
The senator commended NAICOM’s recapitalisation exercise and other reforms aimed at creating stronger, better-capitalised and globally competitive insurance institutions.
He said legislation alone would not transform the sector, adding that effective implementation, stronger governance, consumer protection, innovation and public trust were equally necessary.
He urged stakeholders to move insurance “from the margins to the mainstream” of Nigeria’s economic development.
Mrs Ebelechukwu Nwachukwu, Chairman, Nigerian Insurance Association (NIA), represented by Director-General, NIA, Mrs Bola Odukale, said ISSP aimed to increase insurance penetration from about five per cent to 10 per cent of GDP by 2030.
She described the target as ambitious but achievable through sustained collaboration, innovation and institutional commitment.
She said increasing insurance penetration should not be viewed merely as an effort to grow premium income but as a means of expanding financial protection.
The D-G pledged to mobilise NIA members and provide data, expertise and support for initiatives aimed at improving innovation, consumer confidence and access to affordable insurance products.
In his keynote, Dr Kola Adesina , Group Managing Director, Sahara Power Group, said the industry would continue to underperform if it relied heavily on compulsory insurance and legislation to drive growth.
Adeshina said Nigeria’s youthful population represented a huge market opportunity for insurers, but warned that products that did not reflect the aspirations and realities of young Nigerians would struggle to gain acceptance.
He urged insurers to follow the money by understanding where Nigerians spend their resources and by developing products that give consumers a compelling reason to spend their money on insurance.
Mrs Funmike Sojinuga, Trade Commissioner for Global Affairs Canada in Nigeria, expressed interest in deepening cooperation with Nigeria’s insurance sector.
She said a strong insurance industry was critical to investment, economic stability and development.
According to her, investors do not only follow opportunities but also should have confidence in regulation, governance and the ability to manage risks effectively.
She said a stronger insurance sector could support infrastructure development, renewable energy projects, businesses and livelihoods while helping Nigeria mobilise long-term capital.
Sojinuja noted that the growing Nigeria-Canada relationship provided opportunities for greater cooperation in insurance, regulatory development and innovation.
The Canadian representative said discussions were already underway with stakeholders in Canada’s insurance sector to provide a platform for collaboration and knowledge sharing.
She said the ultimate impact of a stronger insurance sector would extend beyond increased premiums, adding that it help attract investment, strengthen industries and promote shared prosperity. (NAN)
Edited by Uche Anunne